During the month of April, Simpson Co. had cash receipts from customers of $170,000. Expenses totaled $156,000,

Question:

During the month of April, Simpson Co. had cash receipts from customers of $170,000. Expenses totaled $156,000, and accrual basis net income was $42,000. There were no gains or losses during the month.

Required:
a. Calculate the revenues for Simpson Co. for April.
b. Explain why cash receipts from customers can be different from revenues.